Posted on 12/08/2015 3:24:44 PM PST by sparklite2
In November, Soros Fund Management LLC, which billionaire investor George Soros chairs, pulled its roughly $500 million from an account run by Gross at Denver-based Janus Capital Group Inc .
The cash withdrawals are particularly significant for Gross as his Janus Global Unconstrained Bond Fund, which Gross began managing in October 2014, holds more than $700 million of Gross' personal money.
So far this year, the Janus Global Unconstrained Bond Fund is posting negative returns of 2.01 percent and lagging 72 percent of its peer category, according to Morningstar.
(Excerpt) Read more at oann.com ...
Managing a bond fund that has nearly a billion dollars of your own money, and getting a negative return doesn't inspire much confidence and Soros, evidently, sees the disease as spreading into the Capital Group. And when interest rates go up, as they will soon, guess what happens to bond valuations? Ouch.
It bears watching what Soros does with his money, especially when he makes a big move. I imagine that he gets good insider info from the Obama admin, so maybe this is an indicator of an upcoming interest rate rise.
I wonder where Soros is putting that half billion? What might he be up to?
How many basis points do you see rates increasing from this point by the end of 2016?
Don’t worry, Bill’s hedged.
They’ll keep the increase low unless the economy shows signs of strengthening early in the year.
By the end of next year, I look for interest rates to be two points higher that they are today.
With the luck he’s had so far this year (-2 %), he’s probably heavy in K-cup shorts.
http://www.freerepublic.com/focus/f-chat/3369453/posts
People were warned a year ago to get out of bond funds, interest rates were going up - what took everyone so long.
Two points higher in a year? That would kill the housing industry and cause a recession ... In an election year ... Send thousands of Mexicans back over the border ... ( I looking for the down side, be patient)...
Back in the olden days, the stock market return anticipated for financial planning purposes was ten percent a year. For bonds, it was five percent. Five percent by the end of next year presupposes a normal economy, in theory. I don’t think anyone considers this economy normal, and though the markets will take a bump if Trump is elected, the economy itself won’t respond until the second quarter, IMO. It takes time to adjust practices and expectations need a foundation.
So, I don’t see a normal Fed rate until 2017. I’ll stick with two percent.
200 bp is low? Yikes!
If the interest rate is zero now, I think it will be 2 per cent by the end of next year. Shrug.
Gross wasn’t exactly on top of his game the last few years at Pimco either. Maybe he has just plain lost it.
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